Title
Reaffirmation of Block 24 Business Terms (Ordinance S-44153)
Description
Request City Council reaffirm business terms related to the development of the final parcel at Collier Center from the 1991 development agreement.
Report
Summary
In December 1991, the City and Barron Collier Company entered into a Development Agreement pursuant to Ordinance S-20583 for the development of multiple pads on what is known as Block 23 and Block 24. The approved business terms included many provisions including a 60-year term for treatment under the predecessor to Government Property Lease Excise Tax (GPLET) known as possessory interest tax, abatement of that tax for eight years and other typical terms and conditions.
Barron Collier Company and Opus West developed the majority of Block 24 in 2000 with an underground parking structure, office tower and retail/commercial spaces. An undeveloped pad remains at the southeast corner of the block. Hines Interests, LP will construct a high-rise multi-family residential rental project with new retail space on the corner. Pursuant to changes to the Arizona Revised Statutes, City Council must reaffirm the business terms for the City to enter into a lease with the developer. The lease term will be reduced from 60 years to 25 years with no option for an extension. The lease will include GPLET treatment, including eight years of abatement.
Contract Term
The total term of the development agreement is 25 years.
Financial Impact
This item does not impact the General Fund. If approved this action will facilitate construction of a project which will generate new construction and other privilege license tax revenues for the City.
Concurrence/Previous Council Action
City Council approved the Block 24 Development Agreement by Ordinance No. S-20583 on Dec. 11, 1991 which was then amended by Ordinance No. S-21090 on Oct. 7, 1992.
Location
Colliers Center, 201 E. Washington St.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Community and Economic Development Department.